For the last six months, engineering consulting provider WSP Global* (WSP.TO) has been bouncing along the boundary of the yellow zone and the Green Favored Zone of the SIA S&P/TSX Composite Report, finishing Friday in 52nd position. In the SIA S&P/TSX 60 Index Report, WSP.TO is in 5th place after climbing 2 spots on Friday. Since bottoming out a year ago, WSP Global* (WSP.TO) shares have been steadily climbing in a Rising Channel of higher highs and higher lows. Uptrend line support has successfully been tested several times, most recently earlier this month when the shares bounced up off of $165.00 support. Currently, WSP.TO is approaching resistance in the $183.00 to $185.00 zone near its 2021 peak. A break through there would confirm the start of a new upleg which may then face resistance near $190.00 based on a measured move, or the $200.00 round number.
* WSP Global is held in some portfolios managed by SIA Wealth Management.
About a year ago, a correction in WSP Global* (WSP.TO) shares bottomed out and since then, they have been clawing back lost ground. A new uptrend of higher lows has emerged and the shares have completed a series of bullish patterns, most recently, a Double Top breakout back in February that has extended into a bullish High Pole.
The shares are approaching their previous peak near $187.25 where a breakout to a new high would confirm that the shares long-term uptrend has resumed. Should that occur, next potential resistance may appear near $198.70 based on a vertical count, then the $200.00 round number. Initial support appears near $166.25 based on a 3-box reversal.
With a perfect SMAX score of 10, WSP.TO is exhibiting strength across the asset classes.
* WSP Global is held in some portfolios managed by SIA Wealth Management.
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